The best way to go for that to hire a Real Estate Agent to help you with all that. I am sure your lanlord can not determine the price overal he/she would like to get the highest amont for the property . My experince shows usually FOR SALE BY Owners are over prices. You need some one in your side to work with you and look at the all the aspects of your interest. You need to have apprisal contengecy in the contract and Home inspection. Do you know the terms that you need to use in contract in order to portect your interest through entire Home buying process?it is very important. Please let me know if I can be any help.

Hi Jessica,

I don't know how they do things in Arizona, but it seems David does not know how things operate in DC.

You do not pay a commission to a Buyer's Agent. That comes out of the seller's pocket at the closing. Also, as I stated before, that in DC, as well as Maryland and Virginia, a pre-purchase appraisal is required by all lenders before they will approve any loan. If the house doesn't appraise for the sales price, you can't get a loan to cover it anyway, which either gives you the option to ask for a lower price or kill the contract.

I also encourage all of my clients to get a thorough home inspection done, and make the sale contingent on it, because an inspection, NOT an appraisal is what "can reveal non-disclosed concerns" that will allow you to negotiate price, repairs, costs and, if need be, kill the deal. in DC, all an appraisal will do is tell you if the house is worth it's asking price and if it qualifies for the loan you want.

Also, if you are obtaining an FHA loan, an FHA inspector/appraiser will be doing the appraisal for the lender and, once it's done, that house is stuck with that appraisal price for the next 6 months. But an FHA inspector/appraiser can tell the seller - "fix this, or the loan won't be approved" - and the seller will usually fix it.

Many people dispute and/or criticize appraisals - mostly those with a vested interest in the form of commissions, and when it does not hit the value needed or wanted - with the assumption and belief they know more about appraisal practices, procedures, and regulations, even despite the fact they do not have the education, training, experience, or a state issued appraisal license.

Over the years, many smart buyers have obtains a pre-purchase appraisal before making an offer. By doing so, they have saved thousands of dollars on the purchase and in commissions paid. In addition, an appraisal can reveal non-disclosed concerns which may not surface until after closing. It is also a great negotiating tool and holds more credibility than other sources.

Like I stated before - an appraisal will provide you with what you need to know - not what a sales person thinks you want to hear.

Hey Jessica,

My best advice is to have a Realtor® lookup what apartments in your building have been selling for, have them compare them to current sales in the area and give your their advice on what to offer. Also, you may find a unit in your building in a price range you like if your landlord doesn't like your price.

I'd advise against an appraisal as it will cost you $300-$400, and is sort of putting the cart before the horse. If a Realtor® tells you numbers you like, you make an offer, and it is accepted, an appraisal is required by the lender to be done anyway to make sure the property is worth the sales price for the loan. If not, you either have negotiating room to get the sales price down or an out to kill the deal.

If you'd like to send me your address, I'd be happy to run your search for you. I'm licensed in DC, MD and VA, so if it doesn't work out with this apartment - or this building - I can help you out with all your options. If you're a first-time buyer you also need to know that, as your Buyer's Agent, I don't cost you anything. All Buyer's Agent fees come out of the seller's pocket at the sale.

Also, just so you know, to take advantage of the tax credit you have to get to closing/settlement on your home purchase before the end of April. That means you'll need to have a ratified contract (signed by both you and the seller) by no later than the middle of March as typical closings take 30-45 days, longer if you are looking at a short sale or foreclosure.

Feel free to email me at kputz@kangalre.com or give me a call at 703-961-8663.

Kelly Putz
Realtor®
DC/MD/VA
Kangal Real Estate
703-961-8663
kputz@kangalre.com

Why don't you start by finding out what other units in your building are selling for or what they have sold for in the past three to six months. Also, you might just ask what your landlord is asking for the property. You never know, he might want to get rid of it and give you a good deal on it.

All things considered, I would ask some locals realtors what a unit with the features that yours have in the same area are selling for and save my three hundred to four hundred dollars for later. I think getting an appraisal at this point is over kill and unnecessary. Keep in mind that if you pay for an appraisal now and decide to purchase the property later, there is a good chance that you may have to pay for a second appraisal required by your lender. As Ellen alluded to and anyone active in the market know, appraisals have been all over the place lately and some of them have no basis of reality as the banks have put real pressure on the appraisers to come in extremely low. You may want to do a google search on this .

Also, note that typically, you as the buyer do not pay any fees to a realtor when you buy.

If you were to approach a realtor and ask them for comps, my guess is that the realtor would gladly provide them and also let you know that they would be happy to work with you to find other suitable housing if the deal did not pan out. Seems reasonable to me.

Jessica

I think your real question is <What is the market value of our rental condo…and can we buy it for less. > Everyone wants a good deal these days and since you would be saving the owner the expense and hassle of marketing the property…you should be able to strike a fair AND favorable deal.

Here’s my advice. Get both a CMA and an appraisal. For the CMA interview a couple of buyer’s agents. If you decide to purchase the unit, you will want to hire a buyer’s agent to help with the transaction. The agent will write up the offer and manage all of the details to get you to settlement.

Here is an independent appraisal company I can recommend highly:

Renner Hansborough & Reese Inc.
12610 Three Sisters Road
Potomac, MD 20854
Phone: 301.258.8181
Email: appraisals@rhrappraisals.com

I have had personal experience with RHR twice this year and both times was impressed at the depth of specific market knowledge the assigned appraiser possessed. (One property was in Prince William County and the other in the Dupont Circle neighborhood of Washington, DC. In one instance my client hired them in the other the lender hired them.)

You may want to start with the CMA since agents typically do not charge for this service at the time it is performed, but treat it somewhat as a “job interview” with the idea of getting hired in the future to represent you. Let me know if you have further questions.

Deborah

There are Realtors who behave in this manner. However, appraisers work under such ridiculous rules that they are often unable, despite dedication and competence (which some appraisers have) to fully reflect the market. They, of course, cannot even begin to show you alternative properties.

Ellen Levy
RE/MAX ALLEGIANCE
202-723-8907
info@levyteam.com

You can request an appraisal from an appraiser in your area. You can find an appraiser in your area by searching the National Registry - https://www.asc.gov/default.aspx?id=11 - by Name, State, County, City, and/or License Classification. I would recommend for your type of property a Certified or Certified General.

You are better of hiring an appraiser over a realtor/agent for many reasons.
1. An appraiser will not feed you the BS Sales Pitch that realtor/agents do to obtain a signed contract for commissions on the transaction.
2. An appraiser will not feed you false information just to get your business and commission.
3. An appraiser is issued a license by the State to perform appraisals of real estate - realtors/agents are issued licenses to sell.
4. A CMA is not an appraisal - not even close - and an appraisal is far more accurate and credible.
5. An appraiser does not have a vested interest in the property or transaction (like an agent/realtor) and therefore will provide an unbiased conclusion.
6. An appraisers fee is far less than the amount of realtor/agent commissions and an appraisal can save you hundreds or even thousands on the transaction.
7. An appraiser represents your best interest as a client, whereas a realtor/agent represents the best interest of the transaction closing at the highest possible price.
8. An appraiser will tell you what you need to know - an agent will tell you what they think you want to hear.

Ellen is totally wrong and obviously does not know or understand the appraisal process (very few sales people do in reality) by saying "appraisers can only look at closed comps". Realtors/agents only look at closed (and sometimes active) comps, and cherry pick those that support a specific selling/purchase price for the maximum amount of commissions they are seeking.

There is much much more to determining the market value or appraised value of any property than comps.
Don't fall for any sales hype - get the information you need from a State approved appraiser.

You can hire an appraiser. however, it will be better to hire a Realtor because:
1. You have to pay an appraiser
2. A Realtor can show you alternatives which could be even better value than the unit you occupy.
3. appraisers can only look at closed comps. Sometimes (usually, a sharp Realtor can look at actives and under contract and come up with more precise more up to date values.
4. Some Realtors (like The Levy Team 202-723-8907) have access to below market or no money down financing.

Get in touch with an appraiser on your own ($300-$400) or call an agent for a comparative market analysis at no charge.

Feel free to call or write with any questions.

Thanks,

Andy
301.370.4499